Buyers and sellers were attempting to determine the impact of Russia's invasion of Ukraine on the stainless steel market. This industry is already being impacted by growing raw material costs, rising energy expenses, and quickly rising inflation. However, the events of March 8 have thrown stainless steel prices into disarray. The LME suspended trading and cancelled that day's transactions due to the frenzied early morning session, in which nickel prices rose above US$100,000 per tonne before falling to about US$80,000 per tonne.
Participants in the stainless steel supply chain were left wondering when and at what price trade will restart. Nickel price fluctuation generates significant uncertainty for stainless steel consumers since it accounts for a significant amount of both the European and American alloy surcharge calculations. The April alloy levies would have risen dramatically if nickel trade resumed over US$80,000.
Since March 8, the LME has published several new rules in an attempt to restore normality to nickel trading on its platform. European stainless steel producers were able to calculate and publish their April alloy surcharges, following weeks of uncertainty. However, resale values fluctuated widely, as service centres and distributors no longer knew at what price to sell their stock. Outokumpu's stainless 304 flat product surcharge jumped to €3251 per tonne – a thirteen-year high.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.
